Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In July 2025, U.S. Congress enacted the One Big Beautiful Bill Act (“OBBBA”), which included significant provisions modifying the U.S. tax framework. While the Company continues to evaluate the impact of OBBBA, these legislative changes did not and are not expected to have a material impact on the Company’s consolidated financial statements or disclosures.
During the three months ended September 30, 2025 and 2024, the Company recorded a provision for income taxes totaling $1.2 million and a provision for income taxes totaling $1.0 million, respectively, on pre-tax income of $3.4 million and $2.8 million, respectively, representing effective tax rates of 34.0% and 35.1%, respectively. During the nine months ended September 30, 2025, the Company recorded a provision for income taxes totaling $2.5 million on pre-tax income of $7.1 million representing an effective tax rate of 35.6%. During the nine months ended September 30, 2024, the Company recorded a provision for income taxes totaling $1.4 million on pre-tax income of $2.8 million representing an effective tax rate of 49.5%. The effective tax rates differed from the U.S. statutory rate mainly due to the effects of local, state and foreign jurisdiction income taxes, limitations on the deductions of certain expenses including meals and entertainment expense and management compensation and differences between expense recognized for book purposes versus tax purposes associated with equity compensation expense. The impact of permanent differences weighs heavier on the effective tax rate when pre-tax earnings are close to break even.